MTN Contributes 7% To Nigeria’s GDP, Says Karl Toriola

The Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola, has that the tech company alone is contributing 7% to Nigeria’s Gross Domestic Product (GDP).

Toriola, at the TeXcellence 2024 conference, where he spoke on the telecommunications sector’s crucial role in advancing Nigeria’s digital economy.

Reflecting on MTN’s significant footprint, Toriola highlighted how telecoms have been the backbone of the nation’s digital transformation.

“The telecommunication sector has been a critical driver of economic growth in this country, accounting for 14% of the nation’s GDP.

“MTN on its own contributes 7% to Nigeria’s GDP and its evolution into a Techco could propel the nation to unprecedented economic heights”, he said.

A shift in revenue dynamics of telecom operators
From the groundbreaking days of GSM licensing in 2001 to the launch of 5G in 2022, Toriola said MTN has consistently been at the forefront of technological advancement.

He underscored the shift in revenue dynamics, with data now surpassing voice services as the primary income source despite slimmer margins.
He acknowledged the challenges posed by increased competition and external factors, including economic pressures and currency devaluation.

Yet, he stressed that these hurdles are driving the need for innovation in areas like financial inclusion, IoT, AI, and the development of digital ecosystems.
MTN’s ambitious projects

The MTN CEO shared insights into the company’s ambitious projects, such as constructing the largest data center in West Africa and expanding 5G services to deliver high-speed, low-latency connectivity.
He also emphasized the importance of affordability in expanding digital access, pointing out that 71% of Nigerians face challenges maintaining regular internet connectivity due to cost.

Wrapping up, Toriola called for collaboration among industry stakeholders, international partners, and the government to harness Nigeria’s potential and nurture a culture of curiosity and innovation.
“Our biggest asset is our people—their drive and ingenuity. By fostering this and investing in our digital infrastructure, we can achieve the vision of a trillion-dollar economy,” he concluded.

What you should know
MTN is the largest telecommunications operator in Nigeria by subscriber number and the company as of September 2024, accounted for more than 50% of the GSM market share in the country.

According to data released by the Nigerian Communications Commission (NCC) MTN’s active subscriptions stood at 78 million, far ahead of second-placed Airtel Nigeria with 53.7 million active subscriptions
With this, MTN’s market share of the mobile telecommunications market stood at 50.50% as of September, while Airtel’s 34.76%.
The distant 3rd and 4th GSM operators, Globacom and 9mobile, accounted for 12.39% and 2.35% market share respectively.